Thursday, October 17, 2013
Apple Orders Taiwan Suppliers To Slash iPhone 5C Output
TAIPEI (Nikkei)--Apple Inc. has told its suppliers in Taiwan to reduce production of the iPhone 5C for the October-December period, Taiwanese media have reported. The reduction is likely due to lower-than-expected sales of the new smartphone that went on sale last month.
Major electronics manufacturing services providers Pegatron Corp. and Hon Hai Precision Industry Co. -- also known as Foxconn -- have been informed of the reduction. Reportedly, the U.S.-based Apple cut orders by about 20% for Pegatron and by about one-third for Hon Hai.
According to market estimates, Pegatron produces two-thirds of all iPhone 5Cs, with Hon Hai manufacturing the remaining third.
The 5C was expected to be Apple's vehicle for expanding into emerging economies. However, many market watchers have noted that the smartphone is too expensive. The 5C retails for 549 dollars in the U.S.